Business

Gympass is targeting SMB companies to keep expanding globally

After making new deals, Gympass could reach 30 thousand new companies subscribed to the app

Gympass is targeting SMB companies
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  • Gympass has found in SMB companies a way to grow fast internationally, and after focusing on the US market, the Brazilian unicorn plans to reach into the Asian market
  • The company made deals with international brokerage groups to reach their clients bases and create an internal startup to support small companies
  • The forecasts point out that the deals with brokerage firms represent an opportunity of 30 thousand new companies offering the app as a benefit to employees

If you thought that becoming a unicorn was enough for Gympass, think again, because the company aims to go much further than that.  After starting an expansion for the US, the Brazilian app focused on the fitness market is betting on the new strategy of having brokerage firms as partners, according to Valor Econômico. The idea is that these partners could work as a kind of distributor for Gympass‘ subscription for small companies by offering the product to their own client bases. 

READ ALSO:The Brazilian unicorn Gympass received an investment of $300 million from Softbank

And the unicorn already got off to a  big start. The company closed deals with five international brokers groups: Sciath, Marsh, MDS, Willis, and Aon. The last one alone represents a potential of 50 thousand new subscribers on the basis of 1.5 thousand small companies. Looking at it from this point of view, you can already imagine the power of all these partners together, right? 

Forecasts point out that more of these deals represent the opportunity of adding 30 thousand new companies to the app. To make the growth line more realistic, Gympass’ co-founder and global director of partnerships João Barbosa revealed to Valor Econômico that the average rate of individual subscriptions in a company that starts offering Gympass is around 35% of the total number of employees. 

To manage this growth, the company created an internal startup focused on small companies’ needs. According to João Barbosa, Gympass’ co-founder and global director of partnerships, in an interview for Valor Econômico, a new operation was a big step to scale the company’s results because “the needs of small companies are totally different.” 

Including the 14 countries that are already serviced by Gympass, the company counts today with more than 50 thousand subscribed gyms, of which 22 thousand are located in Brazil. As to its next steps, the unicorn is still making an effort to take off on the US market–where the Brazilian startup is fighting against one main competitor, the American Class Pass–and is planning to also reach the Asian market. 

Other countries in Latin America aren’t part of their big plans for now, but Brazil might keep its position as the most important market for the unicorn worldwide in the near future.